Box 2 — Shows the total federal income tax withheld from your paycheck for the tax year. Include this amount on the federal income tax withheld line of your return (Form 1040, line 25a). Box 3 — Shows your wages subject to Social Security tax, which could be different on what’s reported on Box 1.

Why are lines 1 and 3 different on my W-2?

Box 1 (Wages, Tips and Other Compensation) represents the amount of compensation taxable for federal income tax purposes while box 3 (Social Security Wages) represents the portion taxable for social security purposes and box 5 (Medicare Wages) represents the portion taxable for Medicare tax purposes.

How do I read my gross income on my W-2?

Typically, the gross pay is not found on the Form W-2 because of the various pretax deductions. Instead, the gross pay can be found on the employee’s final pay stub for the year.

Is Box 1 on the w2 gross wages?

Box 1: Wages, Tips, Other Compensation. The amount in Box 1 will generally be the “YTD Gross” under the Summary section of your final earnings statement, minus any pre-tax deductions such as health/dental/vision insurance, flexible spending accounts and retirement and tax deferred savings plans, etc.

Is Box 1 on w2 gross or net?

The amount in Box 1 will generally be the “YTD Gross” under the Summary section of your final earnings statement, minus any pre-tax deductions such as health/dental/vision insurance, flexible spending accounts and retirement and tax deferred savings plans, etc.

What are the numbered boxes on the W2 form?

The numbered boxes, Boxes 1-20, can get a little more tricky. If you want Form W-2 explained, dive into each box’s purpose below. Box A shows your employee’s Social Security number.

Where to put Line 7 on a W-2?

The instructions for line 7 state: “For most people, the amount to enter on this line should be shown in box 1 of their Form (s) W-2.” As you note, box 1 is net of 401 (k) contributions; accordingly, such contributions are not considered as earned income for EITC purposes.

Where are the control numbers on a W-2?

Box d. A control number is an internal number used by your employer or your employer’s payroll department. If your employer doesn’t use control numbers, it’s not a big deal: Box (d) will simply be blank. Boxes e and f. These appear as one big block on your form W-2. Your full name is reported in box (e).

What should be in Box 3 of W-2?

Do not include the amount of pre-tax deductions that are exempt from Social Security tax in Box 3. The number in Box 3 should not be higher than the Social Security wage base. For 2020, the SS wage base is $137,700. For 2021, the wage base is $142,800.